Will the taxman clean up your contaminated building

For some time it has been understood that the cost of cleaning up contaminated land qualified for Contaminated Land Tax Relief.

Is this tax break available to buildings which are, for example, contaminated with asbestos?

Until recently, it has been assumed that tax relief would not be made available in this instance. However, the Inland Revenue has now confirmed that the removal or treatment of asbestos in buildings will qualify for Contaminated Land Tax Relief.

This is a very important benefit to the owners of many thousands of buildings contaminated with asbestos. There is a new legal duty of care expected to come into force later this year, which will mean that many millions of pounds will need to be spent to ensure these buildings are safe.

Landlords will now be able to claim up to 150% of the cost of removing asbestos against their tax bills. The important thing is to be able to prove that (a) the property was contaminated when it was acquired and (b) the cost of cleaning up the contamination was incurred after May 2001.